After Market: IT stocks bleed; Zee rallies; 43 stocks flash ‘sell’ signal

NEW DELHI: Heavy selling IT and select banking counters dragged the benchmark indices down by over half a per cent on Friday.

Besides, telecom counters, including Bharti Airtel and Vodafone Idea, extended their fall for a second straight session after the recent runup. On the other hand, Zee Entertainment extended rally after promoters sold stake in the firm.

Overall, the 30-share Sensex settled 215.76 points down at 40,359, while the 50-share Nifty index closed 54 points lower at 11,914.

Joseph K Thomas Head of Research, Emkay Wealth Management said: “The weakness in banking and IT stocks were the major contributing factor behind weak market. We believe it is largely an effect of profit booking in some key counters. The support received from the recent runup in key telecom counters was also missing today.”

Here is the lowdown on the movers and shakers of Wednesday’s session on Dalal Street:

Telecom stocks extend fall

Shares of telecom majors including Bharti Airtel and Vodafone Idea plunged for the second straight session after the recent rally. The former closed 2.09 per cent down at 417.35, while the latter settled 1.36 per cent lower at Rs 6.55. AK Prabhakar, Head of Research, IDBI Capital Markets said, “The government proposal is just a deferment of payment. AQR waiver only will be a lifeline for telecom.”

IT index cracks the most

Heavy selling in Infosys (down 2.89 per cent) and TCS (down 2.20 per cent) dragged the BSE IT index (down 2.21 per cent) the most among the sectoral indices on the exchange. Other sectoral indices including Telecom, Capital Goods and Consumer Durables also cracked more than half a per cent.

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Midcaps and smallcaps outperform

Broader market outpaced benchmarks as BSE Smallcap closed 0.03 per cent down at 13,353, while Midcap index settled 0.14 per cent down at 14,738. With a fall of 4 per cent each, IGL and Castrol India stood among top losers among midcaps. Mphasis, Concor and Bayercrop also retreated between 2-4 per cent. On the other hand, Gayatri Projects, Uco Bank, Zee Learn and Tejas Network declined 7-10 per cent in the smallcap space.

Who moved my Sensex

Infosys wiped off the most 75 points from the Sensex. HDFC Bank, TCS and Kotak Mahindra Bank also wiped off nearly 150 points together from the benchmark index. On the other hand, HDFC, RIL, and ITC capped the downside.

Most active stocks

Zee Entertainment was the most active stock in terms of transacted value on the NSE, followed by RIL, Indiabulls Housing Finance, Infosys, State Bank of India, ICICI Bank and RBL Bank. In terms of transacted volume, Vodafone Idea topped the charts. Others among the top five included YES Bank, Zee, Dish TV, Indiabulls Housing and SAIL.

43 stocks flash ‘sell’ signal

As many as 43 stocks crossed below the MACD signal line to flash ‘sell’ signals. They included HDFC Bank, Hudco, Raymond, Divi’s Lab, DCB Bank, Kesoram Industries and Reliance Industries, among others. When the MACD falls below the signal line, it is a bearish signal and indicates that it may be time to sell. Conversely, when the MACD crosses above the signal line, the indicator gives a bullish signal. MACD gave buy signals for IDBI Bank, Infibeam Avenues, Adani Green and Jagran Prakashan.

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Zee rallies for third session

Shares of Zee Entertainment extended their rally for a third straight session after several foreign funds, including the New York-based BlackRock, Singapore government-backed GIC, HSBC Global, Citigroup, Morgan Stanley Asia, Vanguard and Wellington Management, picked up stakes in the company as the promoters sold stock to repay loans.

The scrip closed 3.66 per cent up at Rs 357.90, taking their three-day rally to over 25 per cent during November 19-22.

Emkay Global Financial Services has ‘Hold’ rating on Zee with a target price of Rs 389. On the positive side, the brokerage house believes that the deal removes the pledge overhang while also ensuring the continuation of the current management team. However, on the other side it added that net cash in the balance sheet fell to Rs 1480 crore in Q2FY20 from Rs 3240 crore in Q4FY18.

IPO update

Initial public offerings by CSB Bank got subscribed 93 per cent on the first day of offer till 4 pm. The public offer received bids for 1,06,28,625 shares so far against 1,15,54,987 shares offered by the company.

Stocks at 52-week high

As many as 18 stocks on the NSE scaled their fresh record high on Friday. The list included stocks such as Adani Green Energy, Affle (India), Agro Phos India, Ankit Metal, DLF, Essel Propack, HDFC AMC, JM Financial, Polycab India, Pfizer and Rallis India. On the other hand, Blue Dart, Dollar Industries, Deccan Cements, V-Mart, Sobha and Zuari Global stood among 60 firms which hit a fresh 52-week low.

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